Mr. Samrith S. is the president of the village bank that currently serves thirteen people from Pun Phnum Village in the Takeo Province. All the members of this village bank will use the loan for different purposes. Mr. Samrith S. is farmer who owns half a hectare-field where he can cultivate rice. Besides running this business, he sells rice-bran powder in the local village. Since this business is flourishing, he wants to expand it. He has decided to ask for a loan to buy more rice-bran powder to re-sell to his consumers who breed pigs. His wife, Mrs. Pich Bopha, is pig breeder who raises five pigs. Mr. Samrith S. is 36 years old and the father of three children, one of whom is attending the local school. The others are too young to work or study because they are one and five years old.
One member of this village bank has end-of-term loans and the rest have monthly payment loans. This member is not required to pay any principal on the loan until the very end of the loan term. End-of-term (EoT) loans are AMK's main product because it is the most beneficial to Cambodia's poor. It allows them to repay portions of the principal whenever they are financially able to. Most clients start to make payments months before the end of the loan term. Almost all of AMK's clients make their payments on time. AMK has a delinquency rate of only 0.09% and AMK has a default rate of 0% on Kiva.
Angkor Microfinance Kampuchea (AMK) is a leading microfinance institution in Cambodia with a wide reach of operations. AMK works with over 6,000 villages and serves clients in every Cambodian province. With an average loan size of US$115, AMK’s focus is to provide credit and savings products to the very poor in rural areas. For more information, please visit AMK's website.
This is a Group Loan
In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.
Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.